1. Unit 1: Types of Government & Economic Systems

2. TYPES OF GOVERNMENT & ECONOMIES DEMOCRATIC: Government controlled by citizens Democracy Direct Representative Republic Constitutional Monarchy Parliamentary System Presidential System Federalism Confederation Capitalism / Free Enterprise / Free Market / Mixed Market Can be Socialist AUTOCRATIC / AUTHORITARIAN: Government controlled by 1 person or small group Absolute Monarchy Dictatorship Totalitarianism Oligarchy Aristocracy Command / Communism Can also be Socialist

3. TYPES OF GOVERNMENT & ECONOMIES DEMOCRATIC: Government controlled by citizens – Power of government is limited Democracy: Majority rules Direct: All people debate & decide on issues Representative: Citizens elect representatives to debate & decide on issues Republic: Voters hold power; Representative government with elected leaders; No monarch or inherited offices Constitutional Monarchy: Hereditary rule limited by Constitution or law created by a representative body; Monarch is often ceremonial only; Ex: Japan, Denmark Parliamentary System: Executive (Prime Minister) and Legislative (Parliament) branches are combined; Prime Minister is often a part of or elected by Parliament; Monarch (if present) is head of state; Fewer checks and balances than Presidential System, but less gridlock; Ex: United Kingdom Presidential System: Executive (President) and Legislative (Congress) branches are separate; Citizens elect the President (indirectly); Ex: US Federalism: Federal / Central government divides power with state governments Confederation: State governments have more powers than the Federal / Central government; opposite of Federalism Capitalism / Free Enterprise / Free Market / Mixed Market Can be Socialist AUTOCRATIC / AUTHORITARIAN: Government controlled by 1 person or small group Absolute Monarchy: Hereditary rule, Unlimited power, Not often in existence today; Ex: Saudi Arabia, Qatar Dictatorship: Complete control by individual; Usually takes power by force, Relies on military/police to maintain control; Limits freedoms/civil rights; One political party; Ex: Uganda (1970s) under Idi Amin, Panama (1980s) under Manuel Noreiga, Fidel Castro’s Cuba today Totalitarianism: Controls all aspects of society: production, beliefs, freedoms; Bans opposition, 1 political party; Uses propaganda & terror to maintain control; Ex: Hitler’s Germany, Mussolini’s Italy, Stalin’s Soviet Union all of early to mid 1900s and North Korea Oligarchy: Rule by a small group of people Aristocracy: Rule by the nobility Command / Communism Can also be Socialist

4. TYPES OF GOVERNMENT & ECONOMIES DEMOCRATIC: Government controlled by citizens Capitalism / Free Enterprise / Free Market / Mixed Market “Laissez-faire” (little to no government interference) Citizens have choices (jobs, purchases) Motivated by profit PRODUCTIVITY! Assembly line, technology, specialization, division of labor, efficiency COMPETITION = better products, lower prices Supply & Demand set prices Private property rights Adam Smith wrote about capitalism in The Wealth of Nations in 1776! Mixed Economies have varying degrees of government involvement – can be “Socialist” Can be Socialist Similar to Communism, but citizens do have the ability to make some individual choices, such as running their own businesses AUTOCRATIC / AUTHORITARIAN: Government controlled by 1 person or small group Command / Communism All businesses are owned/operated by the government No private property exists Citizens work to benefit all, equally No competition, only cooperation Government provides what citizens need Karl Marx wrote about Communism in the late 1800s in The Communist Manifesto Can also be Socialist

5. Other Government & Economic Types Transitional Government: A country is changing from one to another, such as dictatorship to democracy; This can take many years; Ex: Iraq, Afghanistan, Eritrea, or Libya today Theocracy: Rule by religion beliefs or by the divine; Sometimes, the ruler is considered to be a god or part god; Ex: Iran Anarchy: State of having no government or ruler; Lawlessness; Usually happens after civil war; Doesn’t last long – someone always willing to be the leader! Traditional Economy: Agricultural economy; What is produced is based on customs, traditions, community beliefs; NOT productive!; Offers few goods & is labor intensive; Ex: Amish, Underdeveloped countries